FTX Users Try Everything to Get Their Money Off the Crypto Exchange

  • Reports of users trying to get their money off of FTX through alternative assets are growing. 
  • Cointelegraph reported users attempted to purchase NFTs to circumvent the exchange freeze. 
  • The Financial Times noted withdrawals of millions in Tether from FTX on a public blockchain. 

FTX users are desperately trying to withdraw their funds from the crypto exchange, which filed for bankruptcy Friday. 

The scramble comes after FTX said Thursday that it will begin withdrawals of funds based in the Bahamas, where it is headquartered, to comply with regulators’ demands.

Cointelegraph reported that some users are attempting to use Bahamas-based non-fungible tokens, or NFTs, to get they money out. 

In other instances, the report said, users are also offering bounties to FTX employees in order to change details in their account information that would allow them to withdraw funds. As of presstime, FTX appears to have frozen both token and NFT trades. 

FTX did not immediately respond to Insider’s request for comment. 

Meanwhile a report from the Financial Times added that in one instance, a user was able to withdraw millions of dollars worth of stablecoin Tether off of FTX, citing public blockchain information of the transaction. 

FTX filed for bankruptcy protection on Friday after failing to find a savior, the latest blow to Sam Bankman-Fried’s crypto empire and its spiraling liquidity crisis. 

FTX halted customer withdrawals earlier this week after about $5 billion worth of withdrawal requests came in on Sunday. 

In a series of tweets on Thursday, he apologized for the debacle and said his number one goal is to do right by customers to make them whole. 

In announcing its Chapter 11 bankruptcy filing, new FTX CEO John Ray said, “The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders.”

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